Dear Shareholders,

Commodity and energy prices surged in the face of mounting geographical and economic risks that the war between Russia and Ukraine posed in 2022. Supply chain disruptions and price hikes resulted in an inflationist trend in the global economy, affecting growth figures adversely. To help keep inflation under control, central banks implemented tight monetary policies, which in turn, caused a slowdown in global economic activity. During this period, although the US Federal Reserve (FED) has slowed down the pace of interest rate hikes in line with market expectations, the policy interest rate has reached its highest level since 2007. In addition, not making a change in its inflation targets, FED announced its plans to continue with rate hikes. However, unnecessary easing of financial conditions may curb efforts to bring price stability, according to the Bank's statements. Meanwhile, struck by the concerns over inflation, the European Central Bank (ECB) began interest rate hikes and adopted monetary tightening policies in 2022, only to slow down the pace at which it increased rates towards the end of the year. However, interest rate hikes and monetary tightening are expected to continue in 2023. Preliminary data shows that the US economy grew by 2.1% and Eurozone by 3.5% in 2022 in line with these developments. Bank of Japan (BoJ) aimed at bringing more flexibility to its monetary policies by widening its target band for the yield curve of 10-year bonds, unlike the tightening policies of other developed economies' central banks.

In 2022, Türkiye's economy maintained its solid growth owing to domestic demand despite changing market conditions and shrinking foreign demand. Household spending was the driving force for growth. Preliminary data announced shows that Türkiye's economy will conclude the year with a 5% growth despite a limited deceleration during the year.

As always, the Turkish banking sector continued with its activities with no interruption whatsoever. Keeping up with technology advancements, and rapidly responding to new regulations introduced, the sector provided unfaltering support to Türkiye's economy. The total asset size of the sector increased by 55.7% in 2022 reaching TL 14,344 billion. The support provided to Türkiye's economy through cash and non-cash loans amounted to TL 10.226 billion. In this period, the equity of the sector rose by 97.1% to TL 1,407 billion. The capital adequacy ratio of the sector, on the other hand, reached 19.5% in 2022.

In 2022, VakıfBank continued to stand by its customers by providing solid support to the national economy. Our assets surged by 66.9% to TL 1,681 billion. During this period, loans again made the most crucial contribution to asset growth. Our performing loans increased by 62.7% and reached TL 933 billion. Commercial loans increased by 68.2% to TL 755 billion, and consumer loans increased by 42.9% to TL 178 billion.

Increasing its total deposits by 90.8% to TL 1.128 billion, our Bank increased its demand deposits by 76.6% and time deposits by 95.5%. In addition to deposits, with new funds amounting to USD 3.3 billion sourced from international markets, the funding structure was diversified.

Increasing its shareholders' equity by 105.9% to approximately TL 107 billion in 2022, our Bank's net profit for the period reached TL 24 billion 17 million. During this period, our capital adequacy ratio was 15.19%.

We thank our customers, employees, and shareholders for their contribution to the results we achieved in 2022.

Yours sincerely,

TÜRKİYE VAKIFLAR BANKASI T.A.O.

BOARD OF DIRECTORS